Information on Hurricane Insurance in Florida – part two
As mentioned in the previous article, legislations such as FUWA are enacted when government feels that the private insurance companies are overstating the cost of hurricane damage. Also some private insurance companies charge their more “exposed to hurricanes” customers a high premium and over the years they accumulate a high amount, this amount they may be tempted to use for giving bonuses and dividends. When a big hurricane strikes they may actually not have the money to reimburse claims.
Hurricane Andrew of 1992 is a good example; it caused a total damage of around $25 billion of which $16 billion was insured. The insurance costs broke the back of eleven insurance companies and left the Florida Insurance Guaranty Association and other insurance companies to foot the claims of these eleven insurance companies. The remaining insurance companies did a rethink on the extent of cover they were offering; they drastically reduced the cover and also the number of policies they were offering.
The State of Florida had to step in to ensure that not too many companies cancelled too many policies or else many Florida natives would be left facing risks that would ruin them financially. The state passed a law that limited the number of policy cancellations to 5% per annum at the state level and 10% per annum at the county level. It put restrictions on the extent of premium increase that the insurance companies could force on to the home owners.
And yet, insurance companies still managed to wriggle out of the situation; for example the “Allstate Insurance Group” reduced its market share from around 21% in 1992 to around 11% after eight years. What was worrying was that the customer reductions were concentrated in the high-risk areas. The state stepped in after Hurricane Andrew and formed the "Florida Residential Property and Casualty Joint Underwriting Association" (JUA). Its objective was to offer insurance cover at reasonable prices to those people who were unable to get such insurance from the private sector insurance companies.
The FWUA and the JUA covered exposure worth $180 billion by 1996; the absence of a major hurricane for some years saw renewed optimism amongst private insurance companies who chose to add to their portfolio. As a result by the year 2000 the JUA portfolio had fallen to below to 10 billion USD.
David G. - July - 2018 - Sarasota, Florida
We wanted to self-install so we bought accordions and roll downs from Empire Construction.We measured our window and patio and sent Empire the specs.The shutters were an exact match.Installation is very doable for two reasonably mechanical people. In this case it was only one mechanical person and some extra hands. The accordions were a breeze as installation was mostly marking holes for spots, drilling holes, and screwing them in.Our accordions have locking pins that hold them open and act as a second lock when closed. Even if a projectile breaks the lock the rods will keep the shutters closed.These shutters are Bertha HV1. They are High Velocity Hurricane Zone Approved. Having seen a wide range of shutters we are extremely happy with the quality of the product we received!!
Jim J. - June - 2018 - Homestead , Florida
I installed fourteen aluminum accordion shutters which I purchased from Empire Construction.I could not be happier with my choice.The shutters are made very well and are powder-coated.The purchase included all of the required hardware which was powder-coated to match the shutters.The company is very customer-oriented.Michael and his staff were wonderful.They were attentive, helpful, and a delight to work with.The installation video on the website made the installation very easy.I highly recommend Empire Construction to anyone considering a purchase of hurricane shutters. Thanks again. Please say Hi to everyone,